After a tree falls on your roof, a pipe bursts in the wall, or a fire spreads through the kitchen, the real ordeal starts. Most Oklahoma homeowners assume a covered loss will be handled promptly and fairly, but it’s common to wait weeks for payment.
If the adjuster has stopped returning calls, your claim has been kicked back for more paperwork, or you receive a denial with little explanation, you still have options. An experienced attorney can often cut through the red tape and hold an insurer to its statutory deadlines and the consequences of ignoring them.
Understanding Oklahoma Laws That Apply to Insurance Companies
Oklahoma’s Unfair Claims Settlement Practices Act and accompanying Oklahoma Insurance Department rules set guidelines for companies to follow when it comes to interacting with policyholders. These rules include:
- Acknowledging receipt of a claim within 30 days
- Accept or deny within 60 days a properly completed proof of loss submitted by a policyholder
- If further investigation is warranted, it must be completed within 120 days from receipt of the proof of loss (except in cases involving suspected fraud or arson)
- Insurers must respond to claim-related inquiries within 30 days
The Implied Duty of Good Faith
Oklahoma courts have long recognized that an insurance policy carries an implied duty of good faith and fair dealing. The Oklahoma Supreme Court established, in Christian v. American Home Assurance Co., that an insurer must use skill, care, and good faith in handling a policyholder’s claim. Later decisions, including Buzzard v. Farmers Insurance Co., made clear that an insurer must conduct a reasonably thorough investigation before denying a claim. State courts have held that delay alone doesn’t establish bad faith unless the delay itself was unreasonable under the circumstances. What tends to matter is whether the insurer had the information it needed and simply sat on it to avoid paying a legitimate claim.
When an insurer crosses that line, Oklahoma law allows a policyholder to bring a bad faith tort claim alongside a breach of contract claim. A successful bad faith claim can lead to recovery beyond the original policy benefits, including consequential damages tied to the delay or denial and, in more serious cases, punitive damages meant to deter similar conduct.
Timing matters: Oklahoma generally applies a two-year statute of limitations to bad faith tort claims. A related breach of contract claim over the same denial typically has a longer window. That’s one more reason not to wait too long before getting legal advice.
Practical Steps to Take
Document everything. Log every call, email, and letter, along with the adjuster’s name and date. Photograph damage before repairs begin, and keep receipts for anything paid out of pocket.
Get the denial in writing. A legitimate denial should point to specific policy language; an insurer that won’t put its reasoning in writing is worth flagging.
File a complaint with the Oklahoma Insurance Department. The department’s Consumer Assistance Division investigates complaints against insurers and can be reached via phone or an online complaint form. The department cannot force payment of a disputed claim, but a complaint often prompts a fresh review and puts the insurer’s conduct on record.
Check for an appraisal clause. Many Oklahoma property policies let either side bring in an independent appraiser when the dispute is over the amount of loss, not whether the loss is covered.
Talk to an attorney before the clock runs out. Given the two-year limit on bad faith claims, it’s worth having an Oklahoma attorney review the file early, even if a lawsuit isn’t where things end up.
When an Attorney’s Help is Needed
Not every delay or dispute rises to the level of bad faith, and insurers may disagree with a policyholder without breaking the law. But when the pattern looks like stalling, lowballing, or ignoring evidence that supports the claim, Kincannon Law can evaluate the file, deal with the insurer directly, and pursue legal remedies. Call for a consultation.